<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2003

                                       or

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from ____________________to________________________

Commission File number:  0-22260
                         -------



                        CAMPBELL ALTERNATIVE ASSET TRUST
                        --------------------------------
               (Exact name of registrant as specified in charter)

               Delaware                         52-1823554
         ----------------------      ----------------------------------
        (State of Organization)     (IRS Employer Identification Number)

                              Court Towers Building
                          210 West Pennsylvania Avenue,
                            Baltimore, Maryland 21204
                            -------------------------
          (Address of principal executive offices, including zip code)

                                 (410) 296-3301
                                 --------------
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days.

Yes [X]         No [ ]


Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2)

Yes [ ]      No [X]





<PAGE>

<TABLE>
<CAPTION>


                                                                                                             PAGE
                                                                                                             ----
<S>                                                                                                          <C>
PART I - FINANCIAL INFORMATION

         Item 1.    Financial Statements

                    Statements of Financial Condition as of September 30, 2003 (Unaudited)
                    and December 31, 2002 (Audited)                                                           3

                    Condensed Schedule of Investments as of September 30, 2003 (Unaudited)                    4

                    Statements of Operations for the Three Months and Nine Months Ended
                    September 30, 2003 and 2002 (Unaudited)                                                   5

                    Statements of Cash Flows for the Nine Months Ended
                    September 30, 2003 and 2002 (Unaudited)                                                   6

                    Statements of Changes in Unitholders' Capital (Net Asset Value)
                    for the Nine Months Ended September 30, 2003 and 2002 (Unaudited)                         7

                    Notes to Financial Statements (Unaudited)                                                 8

         Item 2.    Management's Discussion and Analysis of Financial Condition and
                    Results of Operations                                                                    14

         Item 3.    Quantitative and Qualitative Disclosure About Market Risk                                19

         Item 4.    Controls and Procedures                                                                  26

PART II - OTHER INFORMATION                                                                                  27

SIGNATURES                                                                                                   28

EXHIBIT INDEX                                                                                               E-1

EXHIBIT 31.01 Certification by Chief Executive Officer                                                      E-2

EXHIBIT 31.02 Certification of Chief Financial Officer                                                      E-4

EXHIBIT 32.01 Certification by Chief Executive Officer                                                      E-6

EXHIBIT 32.02 Certification of Chief Financial Officer                                                      E-7
</TABLE>


                                      -2-
<PAGE>


                        CAMPBELL ALTERNATIVE ASSET TRUST
                        STATEMENTS OF FINANCIAL CONDITION
         September 30, 2003 (Unaudited) and December 31, 2002 (Audited)




<TABLE>
<CAPTION>

                                                            September 30,      December 31,
                                                                2003               2002
                                                            -------------      ------------
<S>                                                        <C>               <C>
ASSETS
    Equity in broker trading accounts
       Cash                                                 $  1,157,906      $  1,776,218
       United States government securities                    20,481,991        15,979,020
       Unrealized gain (loss) on open futures contracts         (837,063)          396,978
                                                            ------------      ------------

              Deposits with broker                            20,802,834        18,152,216

    Cash                                                       8,065,459         8,288,433
    Unrealized gain on open forward contracts                  1,523,317           371,462
    Subscriptions receivable                                           0         7,712,354
                                                            ------------      ------------

              Total assets                                  $ 30,391,610      $ 34,524,465
                                                            ============      ============

LIABILITIES
    Accounts payable                                        $     24,030      $     22,026
    Brokerage fee                                                 57,313            66,966
    Offering costs payable                                        14,793            19,170
    Redemptions payable                                          145,411         1,561,825
                                                            ------------      ------------

              Total liabilities                                  241,547         1,669,987
                                                            ------------      ------------

UNITHOLDERS' CAPITAL (NET ASSET VALUE)
    Managing Owner - 1,413.580 and 6,000.000
       units outstanding at September 30, 2003 and
       December 31, 2002                                       1,791,147         6,747,480
    Other Unitholders - 22,381.019 and 23,214.940
       units outstanding at September 30, 2003 and
       December 31, 2002                                      28,358,916        26,106,998
                                                            ------------      ------------

              Total unitholders' capital
                 (Net Asset Value)                            30,150,063        32,854,478
                                                            ------------      ------------

                                                            $ 30,391,610      $ 34,524,465
                                                            ============      ============
</TABLE>



                             See accompanying notes.



                                     - 3 -
<PAGE>


                        CAMPBELL ALTERNATIVE ASSET TRUST
                        CONDENSED SCHEDULE OF INVESTMENTS
                               September 30, 2003
                                   (Unaudited)






UNITED STATES GOVERNMENT SECURITIES

<TABLE>
<CAPTION>
                                                                                                       % of Net
Face Value        Description                                                         Value           Asset Value
----------        -----------                                                    -------------        -----------
<S>               <C>                                                           <C>                       <C>
$15,000,000       U.S. Treasury Bill, 11/06/2003                                 $ 14,986,650              49.70%
  3,000,000       U.S. Treasury Bill, 10/09/2003                                    2,999,430               9.95%
  2,500,000       U.S. Treasury Bill, 12/04/2003                                    2,495,911               8.28%
                                                                                 ------------         ----------
                  TOTAL UNITED STATES GOVERNMENT SECURITIES
                      (COST, INCLUDING ACCRUED INTEREST, - $20,481,991)          $ 20,481,991              67.93%
                                                                                 ============         ==========
</TABLE>

LONG FUTURES CONTRACTS

<TABLE>
<CAPTION>
                                                                                                  % of Net
             Description                                                         Value           Asset Value
             -----------                                                    -------------        -----------
             <S>                                                           <C>                       <C>
             Metals                                                                3,414               0.01%
             Stock index                                                        (543,807)            (1.80)%
             Short-term interest rate                                             82,402               0.27%
             Long-term interest rate                                              26,337               0.09%
                                                                            ------------          ---------
             TOTAL LONG FUTURES CONTRACTS                                   $   (431,654)            (1.43)%
                                                                            ------------          ---------
</TABLE>

SHORT FUTURES CONTRACTS

<TABLE>
<CAPTION>
                                                                                                  % of Net
             Description                                                         Value           Asset Value
             -----------                                                    --------------        -----------
             <S>                                                           <C>                       <C>
             Energy                                                         $    (333,357)           (1.11)%
             Short-term interest rate                                             (15,915)           (0.05)%
             Long-term interest rate                                              (56,137)           (0.19)%
                                                                            -------------        ----------
             TOTAL SHORT FUTURES CONTRACTS                                  $    (405,409)           (1.35)%
                                                                            -------------        ----------
             TOTAL FUTURES CONTRACTS                                        $    (837,063)           (2.78)%
                                                                            =============        ==========
</TABLE>


LONG FORWARD CURRENCY CONTRACTS

<TABLE>
<CAPTION>
                                                                                                  % of Net
             Description                                                         Value           Asset Value
             -----------                                                    -------------        -----------
             <S>                                                           <C>                       <C>
             VARIOUS LONG FORWARD CURRENCY CONTRACTS                        $   3,402,735             11.28%
                                                                            -------------         ---------
</TABLE>


SHORT FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
                                                                                                       % of Net
Amount            Description                                                         Value           Asset Value
------            -----------                                                    -------------        -----------
<S>               <C>                                                           <C>                      <C>
40,600,000        Swiss Franc, 12/17/03                                          $  (1,728,955)           (5.73)%
                  OTHER SHORT FORWARD CURRENCY CONTRACTS                              (150,463)           (0.50)%
                                                                                 -------------          --------
                  TOTAL SHORT FORWARD CURRENCY CONTRACTS                         $  (1,879,418)           (6.23)%
                                                                                 -------------          --------
                  TOTAL FORWARD CURRENCY CONTRACTS                               $   1,523,317              5.05%
                                                                                 =============          ========
</TABLE>


                             See accompanying notes.

                                      -4-
<PAGE>





                        CAMPBELL ALTERNATIVE ASSET TRUST
                            STATEMENTS OF OPERATIONS
     For the Three Months and Nine Months Ended September 30, 2003 and 2002
                                   (Unaudited)




<TABLE>
<CAPTION>
                                                                Three Months                        Nine Months
                                                                    Ended                              Ended
                                                                September 30,                      September 30,
                                                       -----------------------------      -----------------------------
                                                           2003             2002              2003              2002
                                                       ------------      -----------      ------------       ----------
<S>                                                     <C>               <C>             <C>                <C>
INCOME
    Futures trading gains (losses)
       Realized                                         $ (703,444)       $4,862,525      $ 2,709,296        $3,906,546
       Change in unrealized                               (360,559)          499,761       (1,234,041)        1,355,388
                                                        ----------        ----------      -----------        ----------
              Gain (loss) from futures trading          (1,064,003)        5,362,286        1,475,255         5,261,934
                                                        ----------        ----------      -----------        ----------
    Forward trading gains (losses)
       Realized                                           (755,189)           73,029        3,450,310         1,498,150
       Change in unrealized                              1,114,911          (697,758)       1,151,855          (910,713)
                                                        ----------        ----------      -----------        ----------
              Gain (loss) from forward trading             359,722          (624,729)       4,602,165           587,437
                                                        ----------        ----------      -----------        ----------
    Interest income                                         73,854           116,579          260,007           279,199
                                                        ----------        ----------      -----------        ----------
              Total income (loss)                         (630,427)        4,854,136        6,337,427         6,128,570
                                                        ----------        ----------      -----------        ----------
EXPENSES
    Brokerage fee                                          235,129           228,698          752,122           585,436
    Performance fee                                              0           870,161          967,330           870,161
    Operating expenses                                      13,788            14,141           48,302            42,233
                                                        ----------        ----------      -----------        ----------
              Total expenses                               248,917         1,113,000        1,767,754         1,497,830
                                                        ----------        ----------      -----------        ----------
              NET INCOME (LOSS)                         $ (879,344)       $3,741,136      $ 4,569,673        $4,630,740
                                                        ==========        ==========      ===========        ==========
NET INCOME (LOSS) PER MANAGING
OWNER AND OTHER UNITHOLDER UNIT
    (based on weighted average number of
    units outstanding during the period)                $   (36.84)       $   152.82      $    181.36        $   207.74
                                                        ==========        ==========      ===========        ==========
INCREASE (DECREASE) IN NET ASSET
VALUE PER MANAGING OWNER AND
OTHER UNITHOLDER UNIT                                   $   (39.72)       $   151.34      $    142.52        $   180.15
                                                        ==========        ==========      ===========        ==========
</TABLE>




                             See accompanying notes.

                                      -5-
<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                            STATEMENTS OF CASH FLOWS
              For the Nine Months Ended September 30, 2003 and 2002
                                   (Unaudited)





<TABLE>
<CAPTION>

                                                                                   2003              2002
                                                                               ------------      ------------
<S>                                                                            <C>               <C>
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES
    Net income                                                                 $  4,569,673      $  4,630,740
       Adjustments to reconcile net income to net cash
          (for) operating activities
              Net change in unrealized                                               82,186          (444,675)
              Increase (decrease) in accounts payable and accrued expenses           (7,649)          910,119
              Net (purchases) of investments in United States
                 government securities                                           (4,502,971)       (6,488,913)
                                                                               ------------      ------------

                    Net cash from (for) operating activities                        141,239        (1,392,729)
                                                                               ------------      ------------

CASH FLOWS FROM (FOR) FINANCING ACTIVITIES
    Addition of units                                                             1,419,108         7,774,145
    Decrease in subscriptions receivable                                          7,712,354           514,071
    Increase in subscription deposits                                                     0            29,631
    Redemption of units                                                          (8,473,869)         (386,942)
    Increase (decrease) in redemptions payable                                   (1,416,414)           20,691
    Offering costs charged                                                         (219,327)         (153,455)
    Increase (decrease) in offering costs payable                                    (4,377)            9,152
                                                                               ------------      ------------

                    Net cash from (for) financing activities                       (982,525)        7,807,293
                                                                               ------------      ------------

Net increase (decrease) in cash                                                    (841,286)        6,414,564

CASH
    Beginning of period                                                          10,064,651         8,789,120
                                                                               ------------      ------------

    End of period                                                              $  9,223,365      $ 15,203,684
                                                                               ============      ============

End of period cash consists of:
    Cash in broker trading accounts                                            $  1,157,906      $  2,057,231
    Cash                                                                          8,065,459        13,146,453
                                                                               ------------      ------------

                    Total end of period cash                                   $  9,223,365      $ 15,203,684
                                                                               ============      ============
</TABLE>


                             See accompanying notes.



                                      -6-
<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
         STATEMENTS OF CHANGES IN UNITHOLDERS' CAPITAL (NET ASSET VALUE)
              For the Nine Months Ended September 30, 2003 and 2002
                                   (Unaudited)





<TABLE>
<CAPTION>

                                                                           Unitholders' Capital
                                        -------------------------------------------------------------------------------------
                                               Managing Owner            Other Unitholders                   Total
                                        ------------------------     -------------------------     --------------------------
                                          Units         Amount         Units          Amount         Units           Amount
                                        ----------   -----------     ----------    -----------     ----------     -----------
<S>                                      <C>         <C>             <C>           <C>             <C>            <C>
NINE MONTHS ENDED SEPTEMBER 30, 2003

Balances at
    December 31, 2002                    6,000.000   $ 6,747,480     23,214.940    $26,106,998     29,214.940     $32,854,478
Net income for the nine months
    ended September 30, 2003                           1,064,833                     3,504,840                      4,569,673
Additions                                    0.000             0      1,131.034      1,419,108      1,131.034       1,419,108
Redemptions                             (4,586.420)   (6,000,000)    (1,964.955)    (2,473,869)    (6,551.375)     (8,473,869)
Offering costs                                           (21,166)                     (198,161)                      (219,327)
                                        ----------   -----------     ----------    -----------     ----------     -----------
Balances at
    September 30, 2003                   1,413.580   $ 1,791,147     22,381.019    $28,358,916     23,794.599     $30,150,063
                                       ===========   ===========     ==========    ===========     ==========     ===========


NINE MONTHS ENDED SEPTEMBER 30, 2002

Balances at
    December 31, 2001                    6,000.000    $5,841,866     13,016.882    $12,673,815     19,016.882     $18,515,681
Net income for the nine months
    ended September 30, 2002                           1,121,900                     3,508,840                      4,630,740
Additions                                    0.000             0      7,693.304      7,774,145      7,693.304       7,774,145
Redemptions                                  0.000             0       (379.330)      (386,942)      (379.330)       (386,942)
Offering costs                                           (41,026)                     (112,429)                      (153,455)
                                        ----------   -----------     ----------    -----------     ----------     -----------
Balances at
    September 30, 2002                   6,000.000    $6,922,740     20,330.856    $23,457,429     26,330.856     $30,380,169
                                       ===========    ==========     ==========    ===========     ==========     ===========
</TABLE>


<TABLE>
<CAPTION>

    Net Asset Value Per Managing Owner and Other Unitholder Unit
  -----------------------------------------------------------------
  September 30,     December 31,      September 30,    December 31,
      2003              2002              2002             2001
  -------------     ------------      -------------    ------------
  <S>               <C>               <C>               <C>
   $1,267.10         $1,124.58         $1,153.79         $973.64
   =========         =========         =========         =======
</TABLE>




                             See accompanying notes.


                                      -7-
<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


Note 1.  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         A.   General Description of the Trust

              Campbell Alternative Asset Trust (the Trust) is a Delaware
              statutory trust which operates as a commodity investment pool. The
              Trust was formed on May 3, 2000 and commenced trading on October
              1, 2001. The Trust engages in the speculative trading of futures
              contracts and forward contracts.

              As of December 31, 2002, units are no longer offered to the
              public, but are offered exclusively for sale to the Campbell &
              Company, Inc. 401(K) Plan (the 401(K) Plan).

         B.   Regulation

              As a registrant with the Securities and Exchange Commission, the
              Trust is subject to the regulatory requirements under the
              Securities Act of 1933 and the Securities Exchange Act of 1934. As
              a commodity investment pool, the Trust is subject to the
              regulations of the Commodity Futures Trading Commission, an agency
              of the United States (U.S.) government which regulates most
              aspects of the commodity futures industry; rules of the National
              Futures Association, an industry self-regulatory organization; and
              the requirements of the various commodity exchanges where the
              Trust executes transactions. Additionally, the Trust is subject to
              the requirements of futures commission merchants (brokers) and
              interbank market makers through which the Trust trades.

         C.   Method of Reporting

              The Trust's financial statements are presented in accordance with
              accounting principles generally accepted in the United States of
              America, which require the use of certain estimates made by the
              Trust's management. Transactions are accounted for on the trade
              date. Gains or losses are realized when contracts are liquidated.
              Unrealized gains and losses on open contracts (the difference
              between contract trade price and market price) are reported in the
              statement of financial condition as a net gain or loss, as there
              exists a right of offset of unrealized gains or losses in
              accordance with Financial Accounting Standards Board
              Interpretation No. 39 - "Offsetting of Amounts Related to Certain
              Contracts." The market value of futures (exchange-traded)
              contracts is determined by the various futures exchanges, and
              reflects the settlement price for each contract as of the close of
              the last business day of the reporting period. The market value of
              forward (non-exchange traded) contracts is extrapolated on a
              forward basis from the spot prices quoted as of 5:00 P.M. (E.T.)
              of the last business day of the reporting period. Any change in
              net unrealized gain or loss from the preceding period is reported
              in the statement of operations. Brokerage commissions and other
              trading fees paid directly to the broker are included in
              "brokerage fee" and are charged to expense when contracts are
              opened. United States government securities are stated at cost
              plus accrued interest, which approximates market value.

              For purposes of both financial reporting and calculation of
              redemption value, Net Asset Value per unit is calculated by
              dividing Net Asset Value by the number of units outstanding.



                                      -8-
<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (Unaudited)




Note 1.  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
         (CONTINUED)

         D.   Income Taxes

              The Trust prepares calendar year U.S. and applicable state
              information tax returns and reports to the unitholders their
              allocable shares of the Trust's income, expenses and trading gains
              or losses.

         E.   Offering Costs

              Campbell & Company, Inc. (Campbell & Company) has incurred all
              costs in connection with the initial and continuous offering of
              units of the Trust (offering costs). Offering costs are charged to
              the Trust at a monthly rate of 1/12 of 0.9% (0.9% annualized) of
              the Trust's month-end net asset value (as defined in the Amended
              and Restated Declaration of Trust and Trust Agreement) until such
              amounts are fully reimbursed. Such amounts are charged directly to
              unitholders' capital. The Trust is only liable for payment of
              offering costs on a monthly basis. At September 30, 2003, the
              Trust reflects a liability in the statement of financial condition
              for offering costs payable to Campbell & Company of $14,793.

              The offering costs for which Campbell & Company are being
              reimbursed relate to the offering of units of the Trust to all
              unitholders except the 401(K) Plan. Therefore, Campbell & Company
              rebates to the 401(K) Plan the offering costs charged to the
              401(K) Plan. All such rebates are made by issuing additional units
              to the 401(K) Plan.

              If the Trust terminates prior to completion of payment to Campbell
              & Company for the unreimbursed offering costs incurred through the
              date of such termination, Campbell & Company will not be entitled
              to any additional payments, and the Trust will have no further
              obligation to Campbell & Company. At September 30, 2003, the
              amount of unreimbursed offering costs incurred by Campbell &
              Company is $1,017,760.

         F.   Foreign Currency Transactions

              The Trust's functional currency is the U.S. dollar; however, it
              transacts business in currencies other than the U.S. dollar.
              Assets and liabilities denominated in currencies other than the
              U.S. dollar are translated into U.S. dollars at the rates in
              effect at the date of the statement of financial condition. Income
              and expense items denominated in currencies other than the U.S.
              dollar are translated into U.S. dollars at the rates in effect
              during the period. Gains and losses resulting from the translation
              to U.S. dollars are reported in income currently.

Note 2.  MANAGING OWNER AND COMMODITY TRADING ADVISOR

         The managing owner of the Trust is Campbell & Company, which conducts
         and manages the business of the Trust. Campbell & Company is also the
         commodity trading advisor of the Trust. The Amended and Restated
         Declaration of Trust and Trust Agreement requires Campbell & Company to
         maintain a capital account equal to 1% of the total capital accounts of
         the Trust. Additionally, Campbell & Company is required by the Amended
         and Restated Declaration of Trust and Trust Agreement to maintain a net
         worth of not less than $1,000,000.



                                      -9-
<PAGE>


                        CAMPBELL ALTERNATIVE ASSET TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (Unaudited)


Note 2.  MANAGING OWNER AND COMMODITY TRADING ADVISOR (CONTINUED)

         The Trust pays a monthly brokerage fee of 1/12 of 2.85% (2.85%
         annualized) of month-end net assets to Campbell & Company and
         approximately $6 per round turn to the broker for execution and
         clearing costs. Such costs are limited to 3.5% of average month-end net
         assets per year. From the 2.85% fee, a portion (0.35%) is used to
         compensate selling agents for administrative services and a portion
         (2.5%) is retained by Campbell & Company for trading and management
         services rendered. During the nine months ended September 30, 2003 and
         2002, the amounts paid directly to the broker and interbank market
         maker were $57,590 and $99,497, respectively. During the three months
         ended September 30, 2003 and 2002, the amounts paid directly to the
         broker and interbank market marker were $19,337 and $28,923,
         respectively.

         Campbell & Company is also paid a performance fee equal to 20% of New
         Appreciation (as defined) calculated as of the end of each calendar
         quarter and upon redemption of units.

         Effective January 1, 2003, Campbell & Company rebates to the 401(K)
         Plan the brokerage fee and the performance fee applicable to the 401(K)
         Plan. All such rebates are made by issuing additional units to the
         401(K) Plan.

Note 3.  TRUSTEE

         The trustee of the Trust is Wachovia Trust Company, National
         Association, a national banking association. The trustee has delegated
         to the managing owner the duty and authority to manage the business and
         affairs of the Trust and has only nominal duties and liabilities with
         respect to the Trust.

Note 4.  DEPOSITS WITH BROKER

         The Trust deposits assets with a broker subject to Commodity Futures
         Trading Commission regulations and various exchange and broker
         requirements. Margin requirements are satisfied by the deposit of U.S.
         Treasury bills and cash with such broker. The Trust earns interest
         income on its assets deposited with the broker.

Note 5.  OPERATING EXPENSES

         Operating expenses of the Trust are restricted by the Amended and
         Restated Declaration of Trust and Trust Agreement to .40% per annum of
         the average month-end Net Asset Value of the Trust.

Note 6.  SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS

         Investments in the Trust are made by subscription agreement, subject to
         acceptance by Campbell & Company. The subscriptions receivable at
         December 31, 2002 represent subscriptions from the 401(K) Plan and were
         received by the Trust on or before January 9, 2003.

         The Trust is not required to make distributions, but may do so at the
         sole discretion of Campbell & Company. A unitholder may request and
         receive redemption of units owned, subject to restrictions in the
         Amended and Restated Declaration of Trust and Trust Agreement.




                                      -10-
<PAGE>


                        CAMPBELL ALTERNATIVE ASSET TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (Unaudited)


Note 7.  TRADING ACTIVITIES AND RELATED RISKS

         The Trust engages in the speculative trading of U.S. and foreign
         futures contracts and forward contracts (collectively, "derivatives").
         The Trust is exposed to both market risk, the risk arising from changes
         in the market value of the contracts, and credit risk, the risk of
         failure by another party to perform according to the terms of a
         contract.

         Purchase and sale of futures contracts requires margin deposits with
         the broker. Additional deposits may be necessary for any loss on
         contract value. The Commodity Exchange Act requires a broker to
         segregate all customer transactions and assets from such broker's
         proprietary activities. A customer's cash and other property (for
         example, U.S. Treasury bills) deposited with a broker are considered
         commingled with all other customer funds subject to the broker's
         segregation requirements. In the event of a broker's insolvency,
         recovery may be limited to a pro rata share of segregated funds
         available. It is possible that the recovered amount could be less than
         total cash and other property deposited.

         The amount of required margin and good faith deposits with the broker
         and interbank market makers usually range from 10% to 30% of Net Asset
         Value. The market value of securities held by the broker at September
         30, 2003 and December 31, 2002 were $20,481,991 and $15,979,020,
         respectively, which equals 68% and 49% of Net Asset Value,
         respectively. The cash deposited with interbank market makers at
         September 30, 2003 and December 31, 2002 was $8,025,870 and $8,287,188,
         respectively, which equals 27% and 25% of Net Asset Value,
         respectively.

         The Trust trades forward contracts in unregulated markets between
         principals and assumes the risk of loss from counterparty
         nonperformance. Accordingly, the risks associated with forward
         contracts are generally greater than those associated with exchange
         traded contracts because of the greater risk of counterparty default.
         Additionally, the trading of forward contracts typically involves
         delayed cash settlement.

         The Trust has a substantial portion of its assets on deposit with
         financial institutions. In the event of a financial institution's
         insolvency, recovery of Trust assets on deposit may be limited to
         account insurance or other protection afforded such deposits.

         For derivatives, risks arise from changes in the market value of the
         contracts. Theoretically, the Trust is exposed to a market risk equal
         to the notional contract value of futures and forward contracts
         purchased and unlimited liability on such contracts sold short.

         The unrealized gain (loss) on open futures and forward contracts is
         comprised of the following:


<TABLE>
<CAPTION>
                                        Futures Contracts                    Forward Contracts
                                        (exchange traded)                  (non-exchange traded)
                                 -------------------------------      -------------------------------
                                 September 30,      December 31,      September 30,      December 31,
                                     2003               2002              2003               2002
                                 -------------     -------------      -------------      ------------

   <S>                           <C>               <C>                <C>                 <C>
   Gross unrealized gains        $    112,243      $    573,482       $  3,488,148        $ 2,292,568
   Gross unrealized losses           (949,306)         (176,504)        (1,964,831)        (1,921,106)
                                --------------    -------------       -------------      ------------
   Net unrealized gain (loss)    $   (837,063)     $    396,978       $  1,523,317       $    371,462
                                 =============     ============       ============       ============
</TABLE>



                                      -11-
<PAGE>


                        CAMPBELL ALTERNATIVE ASSET TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (Unaudited)


Note 7.  TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)

         Open contracts generally mature within three months; as of September
         30, 2003, the latest maturity date for open futures contracts is
         September 2004, and the latest maturity date for open forward contracts
         is December 2003. However, the Trust intends to close all contracts
         prior to maturity.

         Campbell & Company has established procedures to actively monitor
         market risk and minimize credit risk, although there can be no
         assurance that it will, in fact, succeed in doing so. Campbell &
         Company's basic market risk control procedures consist of continuously
         monitoring open positions, diversification of the portfolio and
         maintenance of a margin-to-equity ratio that rarely exceeds 30%.
         Campbell & Company seeks to minimize credit risk primarily by
         depositing and maintaining the Trust's assets at financial institutions
         and brokers which Campbell & Company believes to be creditworthy. The
         unitholders bear the risk of loss only to the extent of the market
         value of their respective investments and, in certain specific
         circumstances, distributions and redemptions received.


Note 8.  INTERIM FINANCIAL STATEMENTS

         The statement of financial condition as of September 30, 2003,
         including the September 30, 2003 condensed schedule of investments, the
         statements of operations for the three months and nine months ended
         September 30, 2003 and 2002, and the statements of cash flows and
         changes in unitholders' capital (Net Asset Value) for the nine months
         ended September 30, 2003 and 2002 are unaudited. In the opinion of
         management, such financial statements reflect all adjustments, which
         were of a normal and recurring nature, necessary for a fair
         presentation of financial position as of September 30, 2003, the
         results of operations for the three months and nine months ended
         September 30, 2003 and 2002, and cash flows for the nine months ended
         September 30, 2003 and 2002.


                                      -12-
<PAGE>


                        CAMPBELL ALTERNATIVE ASSET TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (Unaudited)



Note 9.  FINANCIAL HIGHLIGHTS

         The following information presents per unit operating performance data
         and other supplemental financial data for the three months and nine
         months ended September 30, 2003 and 2002. This information has been
         derived from information presented in the financial statements.

<TABLE>
<CAPTION>
                                                                      Three months ended           Nine months ended
                                                                         September 30,               September 30,
                                                                 ---------------------------  --------------------------
                                                                     2003          2002          2003           2002
                                                                  (Unaudited)   (Unaudited)   (Unaudited)    (Unaudited)
                                                                  -----------   -----------   -----------    -----------
<S>                                                              <C>            <C>            <C>           <C>
PER UNIT PERFORMANCE
(for a unit outstanding throughout the entire period)


Net asset value per unit at beginning of period                  $ 1,306.82     $ 1,002.45     $ 1,124.58    $  973.64
                                                                 ----------     ----------     ----------    ---------
Income (loss) from operations:
       Net realized and change in unrealized gain (loss)
           from trading (2), (3)                                     (30.35)        193.44         208.77       237.23
       Expenses net of interest income (1), (3)                       (6.52)        (39.52)        (57.55)      (50.20)
                                                                 ----------     ----------     ----------    ---------
              Total income (loss) from operations                    (36.87)        153.92         151.22       187.03
                                                                 ----------     ----------     ----------    ---------
Offering costs (3)                                                    (2.85)        (2.58)          (8.70)       (6.88)
                                                                 ----------     ----------     ----------    ---------
Net asset value per unit at end of period                        $ 1,267.10     $1,153.79      $ 1,267.10    $1,153.79
                                                                 ==========     =========      ==========    =========
TOTAL RETURN (4)                                                      (3.04)%       15.10%          12.67%       18.50%
                                                                 ==========     =========      ==========    =========
SUPPLEMENTAL DATA
Ratios to average net asset value:
       Expenses prior to performance fee (1), (5)                     (3.02)%      (3.18)%         (3.14)%      (3.11)%
       Performance fee (5)                                             0.00 %     (12.96)%         (4.09)%      (5.11)%
                                                                 ----------     ----------     ----------    ---------
              Total expenses (1), (5)                                 (3.02)%     (16.14)%         (7.23)%      (8.22)%
                                                                 ==========     =========      ==========    =========
       Expenses net of interest income (1), (5), (6)                  (2.05)%      (1.45)%         (2.04)%      (1.46)%
                                                                 ==========     =========      ==========    =========
</TABLE>


Total returns are calculated based on the change in value of a unit during the
period. An individual unitholder's total returns and ratios may vary from the
above total returns and ratios based on the timing of additions and redemptions.

----------
(1)  Excludes brokerage commissions and other trading fees paid directly to the
     broker.
(2)  Includes brokerage commissions and other trading fees paid directly to the
     broker.
(3)  Expenses net of interest income per unit and offering costs per unit are
     calculated by dividing the expenses net of interest income and offering
     costs by the average number of units outstanding during the period. The net
     realized and change in unrealized gain (loss) from trading is a balancing
     amount necessary to reconcile the change in net asset value per unit with
     the other per unit information.
(4)  Not annualized
(5)  Annualized
(6)  Excludes performance fee




                                      -13-
<PAGE>



Item 2. Management's Discussion and Analysis of Financial Condition and
        Results of Operations

Introduction

The offering of Campbell Alternative Asset Trust's (the "Trust") Units of
Beneficial Interest commenced on May 15, 2001, and the initial offering
terminated on September 30, 2001 with proceeds of $15,821,743. The continuing
offering period commenced immediately after the termination of the initial
offering period; additional subscriptions totaling $24,748,772 have been
accepted during the continuing offering period as of September 30, 2003.
Redemptions over the same time period total $17,852,810. The Trust commenced
operations on October 1, 2001.

Gains or losses are realized when contracts are liquidated. Net unrealized gains
or losses on open contracts (the difference between contract price and market
price) are reflected in the statement of financial condition. Any change in net
unrealized gain or loss from the preceding period is reported in the statement
of operations. United States government securities are stated at cost plus
accrued interest, which approximates market value. For purposes of both
financial reporting and calculation of redemption value, Net Asset Value per
Unit is calculated by dividing Net Asset Value by the number of outstanding
Units.

As of December 31, 2002, units are no longer offered to the public, but are
offered exclusively for sale to the Campbell & Company, Inc. 401(K) Plan.

Capital Resources

The Trust will raise additional capital only through the sale of Units offered
pursuant to the continuing offering, and does not intend to raise any capital
through borrowing. Due to the nature of the Trust's business, it will make no
capital expenditures and will have no capital assets which are not operating
capital or assets.

Liquidity

Most United States commodity exchanges limit fluctuations in commodity futures
contracts prices during a single day by regulations referred to as "daily price
fluctuation limits" or "daily limits". During a single trading day, no trades
may be executed at prices beyond the daily limit. Once the price of a futures
contract has reached the daily limit for that day, positions in that contract
can neither be taken nor liquidated. Commodity futures prices have occasionally
moved to the daily limit for several consecutive days with little or no trading.
Similar occurrences could prevent the Trust from promptly liquidating
unfavorable positions and subject the Trust to substantial losses which could
exceed the margin initially committed to such trades. In addition, even if
commodity futures prices have not moved the daily limit, the Trust may not be
able to execute futures trades at favorable prices, if little trading in such
contracts is taking place. Other than these limitations on liquidity, which are
inherent in the Trust's commodity futures trading operations, the Trust's assets
are expected to be highly liquid.

The entire offering proceeds, without deductions, will be credited to the
Trust's bank and brokerage accounts for the purpose of engaging in trading
activities and as reserves for that trading. The Trust meets its margin
requirements by depositing U.S. government securities with the futures broker
and the foreign exchange dealers. In this way, substantially all (i.e., 95% or
more) of the Trust's assets, whether used as margin for trading purposes or as
reserves for such trading, can be invested in U.S. government



                                      -14-
<PAGE>

securities. Investors should note that maintenance of the Trust's assets in U.S.
government securities and banks does not reduce the risk of loss from trading
futures and forward contracts. The Trust receives all interest earned on its
assets.

Approximately 10% to 30% of the Trust's assets will be committed as required
margin for futures contracts and held by the futures broker, although the amount
committed may vary significantly. Such assets are maintained in the form of cash
or U.S. Treasury bills in segregated accounts with the futures broker pursuant
to the Commodity Exchange Act and regulations thereunder. Approximately 10% to
30% of the Trust's assets will be deposited with Deutsche Bank AG or ABN AMRO
Bank, N.V., Chicago Branch, in order to initiate and maintain currency forward
contracts. Such assets are not held in segregation or otherwise regulated under
the Commodity Exchange Act, unless such foreign exchange dealer is registered as
a futures commission merchant. These assets are held either in U.S. government
securities or short-term time deposits with U.S.-regulated bank affiliates of
the foreign exchange dealers. The remaining 40% to 80% of the Trust's assets
will normally be invested in cash equivalents such as U.S. Treasury bills and
held by the futures broker or the foreign exchange dealers.

The Trust's assets are not and will not be, directly or indirectly, commingled
with the property of any other person by Campbell & Company nor invested with or
loaned to Campbell & Company or any affiliated entities.

RESULTS OF OPERATIONS

The return for the nine months ended September 30, 2003 and 2002 was 12.67% and
18.50%, respectively. Of the 2003 increase, approximately 18.15% was due to
trading gains (before commissions), approximately 0.83% was due interest income
offset by approximately 6.31% due to brokerage fees, performance fees, and
operating and offering costs borne by the Trust. An analysis of the 18.15%
trading loss by sector is as follows:

<TABLE>
<CAPTION>

SECTOR                                                  % GAIN (LOSS)
------                                                  -------------
<S>                                                        <C>
Currencies                                                   14.59%

Energy                                                        1.67

Stock Indices                                                 1.52

Interest Rates                                                0.87

Agricultural                                                  0.02

Metals                                                       (0.52)
                                                            ------
                                                             18.15%
                                                            ======
</TABLE>


The long-term trends that created so much opportunity for the Trust in 2002
continued in January 2003. Profits were earned in every sector other than stock
indices. However, the environment was one where a single event, the prospect of
war with Iraq, was driving the Trust's whole portfolio. While the Trust's
systematic and disciplined trading strategies continued to keep it engaged,
leverage was subsequently decreased to protect against significant losses which
could result from potential sharp and extended reversals in core positions.

                                      -15-
<PAGE>

The Trust was positive again in February with metals being the only negative
sector. Strong momentum in energy, fixed income, currencies and stock indices
continued, largely as a result of the troubled global geopolitical outlook. In
order to mitigate the risk of potential sharp reversals in trends, the Trust
maintained a lower-than-normal level of leverage during the month.

The long awaited market reversal occurred in March. Initially energy, precious
metals and fixed income markets all sold off sharply, while equities and the
U.S. Dollar rallied. Several days into this correction, these markets all sold
off suddenly, as hopes of a quick victory in Iraq subsided. With significantly
reduced leverage, the losses the Trust sustained were relatively modest, giving
the Trust a positive first quarter.

In April, the Trust's leverage was returned to a more normal level, but the
portfolio was not fully engaged in many markets due to the lack of strong
trends. Many markets had calmed significantly at this time, but uncertainty was
still prevalent in global markets due to the many unresolved geopolitical
issues. A strong performance in the currencies sector was partially offset by
negative performances in the metals and stock index sectors.

In May, the uncertainty that remained in April dominated the markets the Trust
trades and led to another positive month. While corporate earnings looked
stronger, unemployment, overcapacity and the ongoing threat of terrorism still
loomed large over the global financial markets. The US dollar weakened further
against the other major currencies despite the concern expressed by the United
States' trade partners over the impact this would have on global trade. Interest
rates were the best performing sector for the Trust particularly at the long end
of the yield curve, where higher prices reflected lower rates. Currency cross
rates were also positive, while losses in the energy, stock index and currency
sectors offset some of those gains.

With a small negative result for June, the Trust finished the first half of 2003
with a solid double-digit return. Profits for the month were earned in the
currency sector while long-term interest rates lost value as yield curves
steepened, particularly the Japanese government bond. Short-term interest rates
and stock index sectors contributed modest gains for the month, while the
energy, metals and currency cross-rates contributed small losses. While the
global economy was looking better than it had for several years, many
substantive uncertainties remained.

The Trust's performance for July was negative due to significant price reversals
in the Trust's largest positions. The U.S. Dollar's strong rally caused losses
in the Trust's currency and cross rate sectors. In addition, the sudden sharp
sell-off in long-term bonds resulted in losses in the Trust's long positions.
These losses were partially offset by gains in the Trust's long equity index
positions as investor confidence grew in the economic recovery and the potential
for improved growth.

The stock indices sector was the best performing sector for the month of August
as the U.S. equity markets posted their sixth straight month of gains. Much of
this was attributed to improving consumer confidence, federal tax cuts and
increased defense spending. The energy sector contributed positive returns as
crude oil remained above the thirty-dollar level on continuing supply concerns.
Also, the Trust's short positions in the Japanese Government Bond provided a
significant portion of the month's gains.

In September, the currency sector was the only significantly positive sector as
short U.S. Dollar positions benefited from continued weakness in the U.S.
Dollar. After showing positive returns for most of the month, sudden reversals
in the fixed income, equity and energy markets washed out the


                                      -16-
<PAGE>

gains in the currency sector and put the Trust's portfolio into negative
territory late in the month. The Trust finished the 3rd quarter with a negative
return, but was positive year-to-date.

2002

The return for the nine months ended September 30, 2002 was 18.50%. Of the
increase, approximately 24.55% was due to trading gains (before commissions) and
approximately 1.23% was due to interest income, offset by approximately 7.28%
due to brokerage fees, performance fees, and operating and offering costs borne
by the Trust. An analysis of the 24.55% trading gain by sector is as follows:


<TABLE>
<CAPTION>

SECTOR                                                  % GAIN (LOSS)
------                                                  -------------
<S>                                                       <C>
Interest Rates                                            15.19%

Stock Indices                                              4.88

Currencies                                                 3.19

Energy                                                     1.96

Agricultural                                               (.20)

Metals                                                     (.47)
                                                        -------
                                                          24.55%
                                                        =======
</TABLE>


During January, the Enron and Global Crossing bankruptcies took a toll on the
U.S. equities markets that were already under pressure and resulted in a
stumbling start to the New Year, as layoffs, earnings restatements and revenue
declines continued to dominate the business news. Internationally, the Japanese
economy continued to deteriorate, while the full extent of any Argentinean
contagion is yet to be acknowledged in Brazil or other parts of South America.
On the positive side, U.S. consumer spending continued to be robust. The Trust
posted a small loss for January, largely as a result of volatility in the global
currency markets. Energy and short stock index positions contributed small
gains.

The high market volatility in January continued into February. Further Enron
revelations radiated concern about the accounting practices of other large
companies and caused the equity markets to decline early in the month. Sentiment
reversed abruptly on positive economic news on home sales, manufacturing and
consumer spending. The Trust's performance was negative in February with losses
in energy, stock indices and long-term interest rates partially offset by gains
in short-term interest rates.

March was a mixed month in which positive performance in the energy and interest
rate sectors were more than offset by losses in stock indices and currencies,
which make up a substantial part of the Trust's portfolio. The Japanese Yen
produced the largest loss when it rallied in reaction to Bank of Japan
intervention in preparation for their March 31st fiscal year-end as the Trust
was maintaining a short position. Energy was the strongest performing sector
profiting from long positions in crude oil and unleaded gas. The loss in the
stock indices sector came from short positions in the Nikkei and Hang Seng
indices as Asian equities rallied. The overall loss for the month occurred quite
independently of the equity and bond markets demonstrating the volatility
reducing effect of blending assets whose returns are largely uncorrelated.

April was one of the most difficult trading months since the Trust began
trading. The Trust ended the month down over 4%. The fixed income sector was
whip-lashed as hopes of imminent economic



                                      -17-
<PAGE>


recovery sputtered causing the majority of the trading losses for the month.
Broad-based selling of the three leading US equity indices put them at their
lowest levels since October 2001 and contributed to the Trust's losses for the
month. The energy sector was battered by reports of unfolding events in both
Venezuela and the Middle East. Many areas of concern remain including continued
instability in the Middle East, weak corporate earnings, continued revelations
of corporate accounting issues, fear of a collapse in the residential real
estate market, high energy costs and a growing federal budget deficit due to
lower tax receipts.

The month of May finally provided some trending opportunities that the Trust was
able to profit from. The currencies and interest rates sectors provided the
gains for the month, but these were offset by losses in the energy and stock
indices sectors. While the equities markets remained nervous, many alternative
investment strategies, including managed futures, were able to provide positive
returns.

Strong performance in the month of June contributed to a positive second quarter
and more than made up for losses during the beginning of the year. All major US
equity indices made new cycle lows as domestic and international investor
confidence was battered by reports of scandalous corporate leadership conduct.
The long awaited US economic recovery looked sluggish at best. In this troubled
environment, the US dollar lost ground against most major trading partners,
while interest rate futures rose and stock indices declined. These three sectors
contributed significantly to the profits in June, while small losses were
recorded in the metals and energy sectors.

The Trust's positive performance continued in July posting similar numbers as
June. This was the third consecutive month of positive performance and was
mainly attributable to profits in short stock indices and long interest rate
positions. These gains were reduced by small negative performances in metals,
currencies and cross rates as the dollar strengthened against other major
currencies, again rising above parity with the Euro.

In August, the Trust recorded another month of positive performance with profits
in the interest rates, currencies, stock indices and energy sectors. Global
markets continued to respond to weak US economic data and concerns over
geopolitical developments. The much-anticipated US economic recovery continued
to be elusive, while economies in Europe and Japan appeared to be stagnant. The
quickening pace of US plans to invade Iraq had aroused much international
criticism and concern, which had impacted energy prices and investor confidence.

September was the fifth consecutive month of positive returns for the Trust as
traditional investment strategies continued to struggle. Profits were earned in
the stock indices, interest rates and energy sectors offset by losses in the
currencies sector. Further reports of corporate governance and accounting
failures, the possibility of an unpopular war in the Middle East, rising jobless
claims, disappointing earnings and a gloomy retail outlook were being compounded
by high energy prices and systemic instability in Japan and Brazil. In this time
of global economic weakness and uncertainty, the Trust's ability to trade both
the long and short side of a diverse portfolio of international markets was
proving to be a beneficial tool.


OFF-BALANCE SHEET RISK

The term "off-balance sheet risk" refers to an unrecorded potential liability
that, even though it does not appear on the balance sheet, may result in future
obligation or loss. The Trust trades in futures and forward contracts and is
therefore a party to financial instruments with elements of off-balance



                                      -18-
<PAGE>

sheet market and credit risk. In entering into these contracts there exists a
risk to the Trust, market risk, that such contracts may be significantly
influenced by market conditions, such as interest rate volatility, resulting in
such contracts being less valuable. If the markets should move against all of
the futures interests positions of the Trust at the same time, and if the
Trust's trading advisor was unable to offset futures interests positions of the
Trust, the Trust could lose all of its assets and the Unitholders would realize
a 100% loss. Campbell & Company, Inc., the managing owner (who also acts as
trading advisor), minimizes market risk through real-time monitoring of open
positions, diversification of the portfolio and maintenance of a
margin-to-equity ratio that rarely exceeds 30%.

In addition to market risk, in entering into futures and forward contracts there
is a credit risk that a counterparty will not be able to meet its obligations to
the Trust. The counterparty for futures contracts traded in the United States
and on most foreign exchanges is the clearinghouse associated with such
exchange. In general, clearinghouses are backed by the corporate members of the
clearinghouse who are required to share any financial burden resulting from the
non-performance by one of their members and, as such, should significantly
reduce this credit risk. In cases where the clearinghouse is not backed by the
clearing members, like some foreign exchanges, it is normally backed by a
consortium of banks or other financial institutions.

In the case of forward contracts, which are traded on the interbank market
rather than on exchanges, the counterparty is generally a single bank or other
financial institution, rather than a group of financial institutions; thus there
may be a greater counterparty credit risk. Campbell & Company trades for the
Trust only with those counterparties which it believes to be creditworthy. All
positions of the Trust are valued each day on a mark-to-market basis. There can
be no assurance that any clearing member, clearinghouse or other counterparty
will be able to meet its obligations to the Trust.

DISCLOSURES ABOUT CERTAIN TRADING ACTIVITIES THAT INCLUDE NON-EXCHANGE TRADED
CONTRACTS ACCOUNTED FOR AT FAIR VALUE

The Trust invests in futures and forward currency contracts. The market value of
futures (exchange-traded) contracts is determined by the various futures
exchanges, and reflects the settlement price for each contract as of the close
of the last business day of the reporting period. The market value of forward
(non-exchange traded) contracts is extrapolated on a forward basis from the spot
prices quoted as of 5:00 P.M. (E.T.) of the last business day of the reporting
period.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

INTRODUCTION

Past Results Not Necessarily Indicative of Future Performance

         The Trust is a speculative commodity pool. The market sensitive
instruments held by it are acquired for speculative trading purposes, and all or
a substantial amount of the Trust's assets are subject to the risk of trading
loss. Unlike an operating company, the risk of market sensitive instruments is
integral, not incidental, to the Trust's main line of business.

         Market movements result in frequent changes in the fair market value of
the Trust's open positions and, consequently, in its earnings and cash flow. The
Trust's market risk is influenced by a wide variety of factors, including the
level and volatility of exchange rates, interest rates, equity



                                      -19-
<PAGE>

price levels, the market value of financial instruments and contracts, the
diversification effects among the Trust's open positions and the liquidity of
the markets in which it trades.

         The Trust rapidly acquires and liquidates both long and short positions
in a wide range of different markets. Consequently, it is not possible to
predict how a particular future market scenario will affect performance, and the
Trust's past performance is not necessarily indicative of its future results.

         Value at Risk is a measure of the maximum amount which the Trust could
reasonably be expected to lose in a given market sector. However, the inherent
uncertainty of the Trust's speculative trading and the recurrence in the markets
traded by the Trust of market movements far exceeding expectations could result
in actual trading or non-trading losses far beyond the indicated Value at Risk
or the Trust's experience to date (i.e., "risk of ruin"). Risk of ruin is
defined to be no more than a 5% chance of losing 20% or more on a monthly basis.
In light of the foregoing as well as the risks and uncertainties intrinsic to
all future projections, the inclusion of the quantification included in this
section should not be considered to constitute any assurance or representation
that the Trust's losses in any market sector will be limited to Value at Risk or
by the Trust's attempts to manage its market risk.

Standard of Materiality

         Materiality as used in this section, "Qualitative and Quantitative
Disclosures About Market Risk," is based on an assessment of reasonably possible
market movements and the potential losses caused by such movements, taking into
account the leverage, and multiplier features of the Trust's market sensitive
instruments.

QUANTIFYING THE TRUST'S TRADING VALUE AT RISK

Quantitative Forward-Looking Statements

         The following quantitative disclosures regarding the Trust's market
risk exposures contain "forward-looking statements" within the meaning of the
safe harbor from civil liability provided for such statements by the Private
Securities Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).
All quantitative disclosures in this section are deemed to be forward-looking
statements for purposes of the safe harbor, except for statements of historical
fact (such as the dollar amount of maintenance margin required for market risk
sensitive instruments held at the end of the reporting period).

         The Trust's risk exposure in the various market sectors traded by
Campbell & Company is quantified below in terms of Value at Risk. Due to the
Trust's mark-to-market accounting, any loss in the fair value of the Trust's
open positions is directly reflected in the Trust's earnings (realized or
unrealized).

         Exchange maintenance margin requirements have been used by the Trust as
the measure of its Value at Risk. Maintenance margin requirements are set by
exchanges to equal or exceed the maximum losses reasonably expected to be
incurred in the fair value of any given contract in 95%-99% of any one-day
intervals. The maintenance margin levels are established by dealers and
exchanges using historical price studies as well as an assessment of current
market volatility and economic fundamentals to provide a probabilistic estimate
of the maximum expected near-term


                                      -20-
<PAGE>

one-day price fluctuation. Maintenance margin has been used rather than the more
generally available initial margin, because initial margin includes a credit
risk component which is not relevant to Value at Risk.

         In the case of market sensitive instruments which are not
exchange-traded (which includes currencies in the case of the Trust), the margin
requirements for the equivalent futures positions have been used as Value at
Risk. In those cases in which a futures-equivalent margin is not available,
dealers' margins have been used.

         In the case of contracts denominated in foreign currencies, the Value
at Risk figures include foreign margin amounts converted into U.S. Dollars with
an incremental adjustment to reflect the exchange rate risk inherent to the
Dollar-based Trust in expressing Value at Risk in a functional currency other
than Dollars.

         In quantifying the Trust's Value at Risk, 100% positive correlation in
the different positions held in each market risk category has been assumed.
Consequently, the margin requirements applicable to the open contracts have
simply been aggregated to determine each trading category's aggregate Value at
Risk. The diversification effects resulting from the fact that the Trust's
positions are rarely, if ever, 100% positively correlated have not been
reflected.

         Value at Risk as calculated herein may not be comparable to similarly
titled measures used by others.

THE TRUST'S TRADING VALUE AT RISK IN DIFFERENT MARKET SECTORS

         The following tables indicate the trading Value at Risk associated with
the Trust's open positions by market category as of September 30, 2003 and
December 31, 2002 and the trading gains/losses by market category for the nine
months ended September 30, 2003 and the year ended December 31, 2002. All open
position trading risk exposures of the Trust have been included in calculating
the figures set forth below. As of September 30, 2003 and December 31, 2002, the
Trust's total capitalization was approximately $30.2 million and $32.9 million,
respectively.

                               SEPTEMBER 30, 2003
                               ------------------
<TABLE>
<CAPTION>

                                        % OF TOTAL             TRADING
MARKET SECTOR      VALUE AT RISK      CAPITALIZATION          GAIN/(LOSS)*
-------------      -------------      --------------          ------------
<S>                <C>                   <C>                     <C>
Currencies         $1,282,000              4.25%                 14.59 %
Stock Indices      $  818,000              2.71%                  1.52 %
Energy             $  560,000              1.86%                  1.67 %
Interest Rates     $  385,000              1.28%                  0.87 %
Metals             $    8,000              0.03%                 (0.52)%
Agricultural       $        0              0.00%                  0.02 %
                   ----------             -----                  ------
   Total           $3,053,000             10.13%                 18.15 %
                   ==========             =====                  ======
</TABLE>


                                      -21-
<PAGE>

* - Of the 12.67% return for the nine months ended September 30, 2003,
approximately 18.15% was due to trading gains (before commissions),
approximately 0.83% was due interest income offset by approximately 6.31% due to
brokerage fees, performance fees, and operating and offering costs borne by the
Trust.

                                DECEMBER 31, 2002
                                -----------------
<TABLE>
<CAPTION>

                                        % OF TOTAL              TRADING
MARKET SECTOR      VALUE AT RISK      CAPITALIZATION*         GAIN/(LOSS)*
-------------      -------------      --------------          ------------
<S>                <C>                   <C>                     <C>
Currencies         $  878,000              3.44%                  5.81 %
Energy             $  622,000              2.44%                 (1.64)%
Interest Rates     $  382,000              1.50%                 15.12 %
Stock Indices      $  221,000              0.87%                  3.58 %
Metals             $   68,000              0.27%                 (0.41)%
Agricultural       $   62,000              0.24%                 (0.37)%
                   ----------             -----                  ------
   Total           $2,233,000              8.76%                 22.09 %
                   ==========             =====                  ======
</TABLE>

* - For the purposes of the above "% of Total Capitalization", additions and
redemptions as of December 31, 2002 were not included in the total
capitalization.

** - Of the 15.50% return for the year ended December 31, 2002, approximately
22.09% was due to trading gains (before commissions) and approximately 1.61% was
due to interest income, offset by approximately 8.20% due to brokerage fees,
performance fees and operating and offering costs borne by the Trust.

MATERIAL LIMITATIONS ON VALUE AT RISK AS AN ASSESSMENT OF MARKET RISK

     The face value of the market sector instruments held by the Trust is
typically many times the applicable maintenance margin requirement (maintenance
margin requirements generally ranging between approximately 1% and 10% of
contract face value) as well as many times the capitalization of the Trust. The
magnitude of the Trust's open positions creates a "risk of ruin" not typically
found in most other investment vehicles. Because of the size of its positions,
certain market conditions -- unusual, but historically recurring from time to
time -- could cause the Trust to incur severe losses over a short period of
time. The foregoing Value at Risk tables -- as well as the past performance of
the Trust -- give no indication of this "risk of ruin."

NON-TRADING RISK

     The Trust has non-trading market risk on its foreign cash balances not
needed for margin. However, these balances (as well as the market risk they
represent) are immaterial. The Trust also has non-trading market risk as a
result of investing a substantial portion of its available assets in U.S.
Treasury Bills. The market risk represented by these investments is immaterial.

QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING RISK EXPOSURES

     The following qualitative disclosures regarding the Trust's market risk
exposures -- except for (i) those disclosures that are statements of historical
fact and (ii) the descriptions of how the


                                      -22-
<PAGE>


Trust manages its primary market risk exposures -- constitute forward-looking
statements within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act. The Trust's primary market risk exposures as
well as the strategies used and to be used by Campbell & Company for managing
such exposures are subject to numerous uncertainties, contingencies and risks,
any one of which could cause the actual results of the Trust's risk controls to
differ materially from the objectives of such strategies. Government
interventions, defaults and expropriations, illiquid markets, the emergence of
dominant fundamental factors, political upheavals, changes in historical price
relationships, an influx of new market participants, increased regulation and
many other factors could result in material losses as well as in material
changes to the risk exposures and the risk management strategies of the Trust.
There can be no assurance that the Trust's current market exposure and/or risk
management strategies will not change materially or that any such strategies
will be effective in either the short- or long-term. Investors must be prepared
to lose all or substantially all of their investment in the Trust.

     The following were the primary trading risk exposures of the Trust as of
September 30, 2003, by market sector.


Currencies

     Exchange rate risk is the principal market exposure of the Trust. The
Trust's currency exposure is to exchange rate fluctuations, primarily
fluctuations which disrupt the historical pricing relationships between
different currencies and currency pairs. These fluctuations are influenced by
interest rate changes as well as political and general economic conditions. The
Trust trades in a large number of currencies, including cross-rates -- i.e.,
positions between two currencies other than the U.S. Dollar. Campbell & Company
does not anticipate that the risk profile of the Trust's currency sector will
change significantly in the future.

Interest Rates

     Interest rate risk is a significant market exposure of the Trust. Interest
rate movements directly affect the price of the sovereign bond positions held by
the Trust and indirectly the value of its stock index and currency positions.
Interest rate movements in one country as well as relative interest rate
movements between countries materially impact the Trust's profitability. The
Trust's primary interest rate exposure is to interest rate fluctuations in the
United States and the other G-7 countries. Additionally, the Trust takes
positions in the government debt of Switzerland. Campbell & Company anticipates
that G-7 interest rates will remain the primary market exposure of the Trust for
the foreseeable future. The changes in interest rates which have the most effect
on the Trust are changes in long-term, as opposed to short-term rates. Most of
the speculative positions held by the Trust are in medium- to long-term
instruments. Consequently, even a material change in short-term rates would have
little effect on the Trust were the medium- to long-term rates to remain steady.

Stock Indices

     The Trust's primary equity exposure is to equity price risk in the G-7
countries and several other countries (Hong Kong, Spain and Taiwan). The stock
index futures traded by the Trust are by law limited to futures on broadly based
indices. As of September 30, 2003, the Trust's primary exposures were in the S&P
500 (USA), DAX (Germany), NASDAQ (USA), FTSE (U.K.), IBEX (Spain), Euro STOXX 50
and Nikkei (Japan) stock indices. The Trust is primarily exposed to the


                                      -23-
<PAGE>

risk of adverse price trends or static markets in the major U.S., European and
Japanese indices. (Static markets would not cause major market changes but would
make it difficult for the Trust to avoid being "whipsawed" into numerous small
losses.)

Energy

     The Trust's primary energy market exposure is to gas and oil price
movements, often resulting from political developments and ongoing conflicts in
the Middle East. As of September 30, 2003, crude oil, heating oil and natural
gas are the dominant energy market exposures of the Trust. Oil and gas prices
can be volatile and substantial profits and losses have been and are expected to
continue to be experienced in this market.

Metals

     The Trust's metals market exposure is to fluctuations in the price of
aluminum, copper, gold, nickel and zinc. The risk allocation to the metal sector
has not exceeded 3% of the Trust's portfolio during the nine months ended
September 30, 2003.

QUALITATIVE DISCLOSURES REGARDING NON-TRADING RISK EXPOSURE

     The following were the only non-trading risk exposures of the Trust as of
September 30, 2003.

Foreign Currency Balances

     The Trust's primary foreign currency balances are in Japanese Yen, British
Pounds and Euros. The Trust controls the non-trading risk of these balances by
regularly converting these balances back into dollars (no less frequently than
twice a month, and more frequently if a particular foreign currency balance
becomes unusually large).

Treasury Bill Positions

     The Trust's only market exposure in instruments held other than for trading
is in its Treasury Bill portfolio. The Trust holds Treasury Bills (interest
bearing and credit risk-free) with durations no longer than six months. Violent
fluctuations in prevailing interest rates could cause immaterial mark-to-market
losses on the Trust's Treasury Bills, although substantially all of these
short-term investments are held to maturity.

QUALITATIVE DISCLOSURES REGARDING MEANS OF MANAGING RISK EXPOSURE

     The means by which Campbell & Company attempts to manage the risk of the
Trust's open positions is essentially the same in all market categories traded.
Campbell & Company applies risk management policies to its trading which
generally limit the total exposure that may be taken per "risk unit" of assets
under management. In addition, Campbell & Company follows diversification
guidelines (often formulated in terms of the balanced volatility between markets
and correlated groups), as well as imposing "stop-loss" points at which open
positions must be closed out.

                                      -24-
<PAGE>

     Campbell & Company controls the risk of the Trust's non-trading instruments
(Treasury Bills held for cash management purposes) by limiting the duration of
such instruments to no more than six months.

GENERAL

The Trust is unaware of any (i) anticipated known demands, commitments or
capital expenditures; (ii) material trends, favorable or unfavorable, in its
capital resources; or (iii) trends or uncertainties that will have a material
effect on operations. From time to time, certain regulatory agencies have
proposed increased margin requirements on futures contracts. Because the Trust
generally will use a small percentage of assets as margin, the Trust does not
believe that any increase in margin requirements, as proposed, will have a
material effect on the Trust's operations.



                                      -25-
<PAGE>



Item 4.       Controls and Procedures

         Campbell & Company, Inc., the managing owner of the Trust, with the
participation of the managing owner's Chief Executive Officer and Chief
Financial Officer, has evaluated the effectiveness of the design and operation
of its disclosure controls and procedures with respect to the Trust within 90
days of the filing date of this quarterly report, and, based on their
evaluation, have concluded that these disclosure controls and procedures are
effective. There were no significant changes in the managing owner's internal
controls with respect to the Trust or in other factors applicable to the Trust
that could significantly affect these controls subsequent to the date of their
evaluation.



                                      -26-
<PAGE>


                            PART II-OTHER INFORMATION

Item 1.   Legal Proceedings.

          None

Item 2.   Changes in Securities and Use of Proceeds

          None

Item 3.   Defaults Upon Senior Securities

          Not applicable.

Item 4.   Submissions of Matters to a vote of Security Holders.

          None

Item 5.   Other Information

          None

Item 6.   Exhibits and Reports on Form 8-K.

          (a)     Exhibits
<TABLE>
<CAPTION>
          Exhibit Number     Description of Document
          --------------     -----------------------
           <S>               <C>
            31.01            Certification of Bruce L. Cleland, Chief
                             Executive Officer, pursuant to Rules 13a-14 and
                             15d-14 of the Securites Exchange Act of 1934.

            31.02            Certification of Theresa D. Becks, Chief
                             Financial Officer, pursuant to Rules 13a-14 and
                             15d-14 of the Securites Exchange Act of 1934.

            32.01            Certification of Bruce L. Cleland, Chief
                             Executive Officer, pursuant to 18 U.S.C. Section
                             1350, as enacted by Section 906 of The
                             Sarbanes-Oxley Act of 2002.

            32.02            Certification of Theresa D. Becks, Chief
                             Financial Officer, pursuant to 18 U.S.C. Section
                             1350, as enacted by Section 906 of The
                             Sarbanes-Oxley Act of 2002.
</TABLE>


          (b)     Reports of Form 8-K

                  None


                                      -27-
<PAGE>


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                             CAMPBELL ALTERNATIVE ASSET TRUST
                             (Registrant)

                                By:  Campbell & Company, Inc.
                                     Managing Owner




Date: November 13, 2003         By:  /s/Theresa D. Becks
                                     ---------------------
                                     Theresa D. Becks
                                     Chief Financial Officer/Treasurer/Director


                                      -28-
<PAGE>

                                  EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Number    Description of Document                        Page Number
--------------    -----------------------                        -----------
<S>               <C>                                                 <C>
31.01             Certification by Chief Executive Officer          E 2
31.02             Certification by Chief Financial Officer          E 3
32.01             Certification by Chief Executive Officer          E 4
32.02             Certification by Chief Financial Officer          E 5
</TABLE>


                                       E 1